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Economics glossary · When markets fail

Unintended consequences

What unintended consequences means in economics, as one of types of government failure, with an example and a question to test yourself.

Definition
Unintended consequences
Unintended consequences are effects of a policy that its makers did not plan, as people respond in unexpected ways that undermine the policy's intent.
Example

Can you think of an example of unintended consequences?

Test yourself

Can you name the four types of government failure the specifications list, and a fifth this page adds?

Learn it properly: the module

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